Quantum computing shows strong growth into the datacenter

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The market for quantum computing, communications and sensing technology was worth US$954 million in 2024 and will grow by about 15 percent to about US$1.1 billion in 2025, according to Yole.

www.eenewseurope.com, Mar. 18, 2025 – 

This is because quantum technologies hold promise for dealing with some otherwise intractable problems in industry, healthcare and cryptography, Yole said.

Right now the largest part of the market is for quantum sensing systems and quantum hardware but quantum computing as a service and quantum software as a service will grow at a faster rate and come to lead the market, the market analyst reckons.

The quantum market will grow with a compound annual growth rate of 32 percent between 2024 and 2035 leaving quantum hardware with just about 11 percent of the market by then.

By 2030 the quantum hardware market will be worth US$740 million out of an overall market worth about US$4.49 billion, or about 16.5 percent of the market, Yole asserts.

Semiconductor companies such as GlobalFoundries, TSMC, Intel, and X-Fab, along with photonics firms such as Ligentec and equipment makers such as Keysight and Oxford Instruments, are building a technology foundation for quantum chip production and testing.

Challenges and fragmentation

However, a number of challenges remain including qubit noise, coherence times and error correction. All of these things impact the ability to scale qubit numbers and there is as yet a great deal of technology fragmentation which inhibits the development of a standard hardware-software interface.

Beyond 2028 Yole expects quantum computing to dominate the market with most services running on quantum computers in the cloud.

Global investment in quantum technologies to date is estimated to have been about US$30 billion in public funding and more than US$5 billion in private financing. Approximately 75 percent of the investment has gone to quantum computing hardware, with the remainder allocated to quantum systems and software development.

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